Jan. 25, 2007 — Allegheny Technologies Inc. reported net income of $167.1 million on sales of $1.40 billion for the fourth quarter, and net income of $571.9 million on sales of $4.94 billion for the full year 2006.

Fourth Quarter Results — The $167.1 million net income ($1.63 per share) compares to net income of $118.8 million ($1.17 per share) for the fourth quarter of 2005. Sales of $1.40 billion represent a 56% increase over sales of $894.4 million for the fourth quarter of 2005.

Results included a LIFO inventory valuation reserve charge of $90.6 million, due primarily to higher nickel, nickel-bearing scrap, and titanium scrap raw material costs. The LIFO inventory valuation reserve charge was $1.6 million in the fourth quarter of 2005 and $54.0 million in the third quarter of 2006.

Segment operating profit was $306.7 million, an increase of $163.7 million (114%) compared to the fourth quarter 2005, and 5% higher than the third quarter 2006, as a result of improved performance across the company’s High Performance Metals and Flat-Rolled Products segments.

Income before tax was $259.1 million, an increase of $197 million over income before tax of $62.1 million for the fourth quarter of 2005. (The 2005 results included a $20.9 million ($0.21 per share) net special gain.)

Full Year Results — The $571.9 million net income ($5.59 per share) compare to net income (which included a net special gain) of $359.8 million ($3.57 per share) in 2005. Sales of $4.94 billion are 39.5% higher than sales of $3.54 billion for 2005.

Segment operating profit was $1.06 billion (21.4% of sales), an increase of $525.8 million compared to 2005. Results included a LIFO inventory valuation reserve charge of $197.0 million, due primarily to higher nickel, nickel-bearing scrap, and titanium scrap raw material costs. The LIFO inventory valuation reserve charge was $45.8 million in 2005.

Income before tax was $869.2 million, compared to $307.1 million in 2005. Results for 2005 included a $20.9 million ($0.21 per share) net special gain.

Cash on hand increased to $502.3 million at December 31, 2006.

Comments — “Our strategic goal for 2006 was profitable growth, and we delivered on that goal for our shareholders,” said Patrick Hassey, Chairman, President and CEO. “The velocity of change was apparent during the year, and ATI demonstrated strong results and future earnings power plus the ability to sustain further profitable growth.

“Sales and profitability accelerated in 2006, and ATI posted sequential quarter-on-quarter improvement throughout the year. The fourth quarter 2006 was the best quarter of the year. Sales were $1.4 billion, segment operating profit was nearly $307 million, or 22% of sales, and earnings per share was $1.63 during the fourth quarter 2006. These outstanding results were accomplished notwithstanding a LIFO inventory valuation reserve charge of $91 million in the fourth quarter 2006.

“ATI’s 2006 performance was a record year for sales, segment operating profit, and earnings per share. Sales increased nearly 40% to $4.9 billion. Segment operating profit reached over $1 billion, or 21.4% of sales, and earnings per share was $5.59. Our record profitability was accomplished even with a LIFO inventory valuation reserve charge of $197 million.

“Cash flow was strong in 2006. Cash on hand at the end of the year was $502 million, an increase of nearly $140 million. This is after investing $534 million in managed working capital due primarily to higher business activity, $235 million in capital expenditures, $100 million in a voluntary pension contribution, and $43 million in dividend payments. During the fourth quarter, ATI’s Board of Directors increased our dividend by 30%. Net debt to total capitalization at the end of 2006 stood at just 3.3%.

“Other important financial metrics were also strong for 2006. Annual return on capital employed was 34.5%, and annual return on stockholders equity was 49.9%.

“ATI’s continued growth is being driven by strong and increasing demand from the aerospace and defense market and increasing demand from those markets that are vital to the building and rebuilding of the global infrastructure.

“The foundation has been set for further profitable growth in 2007 and beyond. Our businesses are positioned to continue to deliver outstanding operational execution. We have several major long-term customer supply agreements in place, and ATI’s presence and sales are growing around the world.

“Our strategic capital projects are expected to contribute significant growth with very good returns beginning in 2007. To achieve additional growth, we plan $400 to $450 million of self-funded capital investments in 2007, approximately 70% of which is related to our previously announced strategic growth plans. We expect strong cash flow in 2007 to support this level of investment.

“We currently have good visibility of the demand for our products from most of our markets. For commodity stainless sheet, the record high cost of nickel and the resulting record raw material surcharge is causing some of our domestic service center customers to be conservative with their inventories in the first quarter 2007. Demand from end-use markets remains good. We expect to offset much of the domestic service center inventory management actions through increased sales of high-value flat-rolled products and other sales efforts.

“Overall, we like what we see in our major markets and believe ATI is positioned and on track for another revenue and earnings growth year in 2007. We have new production capabilities, long-term commitments from customers, and the strong financial position to achieve sustained profitable growth.”

Allegheny Technologies is one of the largest and most diversified specialty metals producers in the world with revenues of $4.9 billion during 2006. ATI’s major markets are aerospace and defense, chemical process industry/oil and gas, electrical energy, medical, automotive, food equipment and appliance, machine and cutting tools, and construction and mining. Products include titanium and titanium alloys, nickel-based alloys and superalloys, stainless and specialty steels, zirconium, hafnium, and niobium, tungsten materials, grain-oriented silicon electrical steel and tool steels, and forgings and castings.